Generali Asset Management SPA SGR Acquires 15,966 Shares of Omnicom Group Inc. $OMC

Key Points

• Generali Asset Management increased its stake in Omnicom Group by 346% in the fourth quarter, buying 15,966 additional shares and bringing its total holding to 20,580 shares worth about $1.66 million.
• Omnicom reported strong quarterly results, with earnings per share of $1.90 and revenue of $6.24 billion, both ahead of analyst expectations. Revenue was up 69.2% year over year.
• The company also announced a quarterly dividend of $0.80 per share and a $5 billion share repurchase program, while Wall Street currently has a consensus rating of Hold with an average target price of $93.71.

Generali Asset Management SPA SGR lifted its holdings in Omnicom Group Inc. (NYSE:OMC - Free Report) by 346.0% during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 20,580 shares of the business services provider's stock after buying an additional 15,966 shares during the period. Generali Asset Management SPA SGR's holdings in Omnicom Group were worth $1,662,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in OMC. EverSource Wealth Advisors LLC boosted its stake in shares of Omnicom Group by 82.9% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,917 shares of the business services provider's stock worth $138,000 after purchasing an additional 869 shares during the period. Gamco Investors INC. ET AL purchased a new position in shares of Omnicom Group during the 2nd quarter worth about $241,000. Gabelli Funds LLC purchased a new position in shares of Omnicom Group during the 2nd quarter worth about $1,061,000. Daiwa Securities Group Inc. boosted its stake in shares of Omnicom Group by 5.3% during the 2nd quarter. Daiwa Securities Group Inc. now owns 29,373 shares of the business services provider's stock worth $2,113,000 after purchasing an additional 1,482 shares during the period. Finally, Sei Investments Co. boosted its stake in shares of Omnicom Group by 14.1% during the 2nd quarter. Sei Investments Co. now owns 361,266 shares of the business services provider's stock worth $25,990,000 after purchasing an additional 44,746 shares during the period. 91.97% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on OMC. Citigroup decreased their price target on shares of Omnicom Group from $115.00 to $105.00 and set a "buy" rating for the company in a research note on Thursday, April 30th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Omnicom Group in a research note on Thursday, January 22nd. Barclays lifted their price target on shares of Omnicom Group from $82.00 to $90.00 and gave the company an "equal weight" rating in a research note on Monday, February 23rd. Morgan Stanley lifted their price target on shares of Omnicom Group from $82.00 to $83.00 and gave the company an "equal weight" rating in a research note on Friday, May 1st. Finally, Argus raised shares of Omnicom Group to a "hold" rating in a research note on Thursday, March 26th. Four investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $93.71.

Omnicom Group Stock Up 0.2%

NYSE:OMC opened at $77.04 on Friday. Omnicom Group Inc. has a fifty-two week low of $66.33 and a fifty-two week high of $87.17. The stock has a market capitalization of $21.96 billion, a P/E ratio of 197.55, a P/E/G ratio of 0.46 and a beta of 0.66. The company has a debt-to-equity ratio of 0.99, a quick ratio of 0.77 and a current ratio of 0.91. The company's 50-day simple moving average is $78.07 and its 200-day simple moving average is $76.78.

Omnicom Group (NYSE:OMC - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The business services provider reported $1.90 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.84 by $0.06. The business had revenue of $6.24 billion for the quarter, compared to analyst estimates of $5.85 billion. Omnicom Group had a net margin of 0.32% and a return on equity of 24.48%. The business's revenue for the quarter was up 69.2% on a year-over-year basis. During the same period in the previous year, the company earned $1.70 earnings per share. On average, equities analysts anticipate that Omnicom Group Inc. will post 10.97 earnings per share for the current fiscal year.

Omnicom Group Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, July 9th. Investors of record on Wednesday, June 10th will be issued a $0.80 dividend. This represents a $3.20 annualized dividend and a yield of 4.2%. The ex-dividend date is Wednesday, June 10th. Omnicom Group's dividend payout ratio is 820.51%.

Omnicom Group announced that its Board of Directors has approved a share repurchase program on Wednesday, February 18th that permits the company to buyback $5.00 billion in outstanding shares. This buyback authorization permits the business services provider to reacquire up to 38.1% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board of directors believes its shares are undervalued.

About Omnicom Group

Omnicom Group Inc NYSE: OMC is a global marketing and corporate communications holding company headquartered in New York City. Founded in 1986 through the merger of the BBDO, DDB and Needham Harper agencies, Omnicom has built a portfolio of leading brands and networks serving clients across diverse industries.

The company's primary business activities encompass advertising, strategic media planning and buying, digital and interactive marketing, direct and promotional marketing, public relations, and customer relationship management.

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